When examining offers for your Boston property, it important that you understand how to properly run the numbers. Even if a deal looks great on paper, does not imply it is the very best option for you. Learn more about how to crunch the numbers in our most current post!
While the highest deal might seem the best, this isn’t constantly the case. There are numerous numbers you will need to consider when evaluating offers for your Boston house. Below, we go over some of the expenses you might face when selling your house in the Boston local markets such as Holbrook, Braintree, and other areas.
Closing Costs
With a conventional sale to a personal purchaser, a seller can expect to pay about 2-5% of the final sale price in closing costs. While this varies by the transaction, you’ll wish to budget at least 5% to closing costs to ensure you are covered. You don’t wish to be amazed at the closing table, owing more than you had planned for.
Repair Work
While evaluating deals for your Boston home, you’ll wish to think about all of the costs you experienced making repair work and fixing it up. Repairs aren’t typically inexpensive, and you will likely have to face them prior to putting your Boston property on the MLS. In addition, your prospective purchaser will likely attempt to negotiate even more repair work once the evaluation has actually been finished. Investing funds on a home you ultimately want to sell can be extremely discouraging, however, with a direct sale, you’ll have the ability to keep that money in your pocket.
Other Contingencies
There are all kinds of contingencies a buyer might put in their contract. Having a contingency protects the buyer should something go wrong. If there is a problem with the property, they will be able to back out of the sale without any penalty. Some common contingencies include things like not being able to sell their current house in time. If their lender backs out of the deal. And if the inspection comes back with a significant number of repairs that need to be made.
Timeline
How fast will your buyer be able to close? As any property investor will tell you, the longer you hold on to a property, the more it will end up costing you. Holding costs can add up quickly, eating into your profits. While the property in on the market, you’ll have to continue paying for things such as homeowners insurance, property taxes, utility bills, possibly a mortgage, and routine maintenance on the property. You are responsible for these items up until the day of closing. If your house sits on the market for a while or if your sale falls through, you could find yourself stuck paying these costs for the next several months.
Risk
When reviewing offers you’ll want to calculate the risk involved in the sale. If your buyer is using financing, you’ll want to be prepared just in case things fall through. Often times, a lender will back out of the deal if a property appraises too low. Sales fall through every day, and you’ll want to be prepared if yours does too. If you’re working with a buyer who is using financing, make sure they are pre-approved, not just pre-qualified.
If you choose to sell to a cash buyer, your risk of things falling through drops significantly. Cash buyers will have the money ready to go before making an offer for your property. This will save you days or even weeks as opposed to dealing with lender requirements. When you sell directly, you won’t have to deal with appraisals, inspections, repairs, or any red-tape from a lender.
If you choose to work with a local Boston Massachusetts real estate agent, you’ll have to commit to a listing agreement. Once you have entered into this agreement, your agent will be entitled to their commission, or at least a part of it, no matter how the house sells. However, if you are able to find a reputable buyer such as Fast Home Sales before hiring a Boston agent, you’ll be able to instantly save on commission costs. This can be upwards of 6% of the final sale price that you’ll be able to keep in your pocket. This could amount to thousands of dollars you will e able to use for your next property should you so desire.
Home Appliances and Fixtures
Sometimes when selling a home, the furnishings, fixtures, and appliances will all enter into play. Does your possible purchaser want to keep any of these items or will you be taking whatever with you? If you are leaving any items with the brand-new buyers, you’ll wish to factor in how much it will cost you to replace these products. Needing to change appliances, fixtures, and other items in your new home can cost a fortune. Make sure you are prepared for these replacement expenses before accepting a deal for your Boston home.
